Abstract: Strategic, tactical, and operational harvesting plans for the forestry and logging industry have been widely studied for more than 60 years. Many different settings and specific constraints due to legal, environmental, and operational requirements have been modeled, improving the performance of the harvesting process significantly. During the summer of 2017, Chile suffered from the most massive wildfires in its history, affecting almost half a million hectares, of which nearly half were forests owned by medium and small forestry companies. Some of the stands were burned by intense crown fires, which always spread fast, that burned the foliage and outer layer of the bark but left standing dead trees that could be salvage harvested before insect and decay processes rendered them unusable for commercial purposes. Unlike the typical operational programming models studied in the past, in this setting, companies can make insurance claims on part or all of the burnt forest, whereas the rest of the forest needs to be harvested before it loses its value. This problem is known as the salvage logging problem. The issue also has an important social component when considering medium and small forestry and logging companies: most of their personnel come from local communities, which have already been affected by the fires. Harvesting part of the remaining forest can allow them to keep their jobs longer and, hopefully, leave the company in a better financial situation if the harvesting areas are correctly selected. In this work, we present a novel mixed-integer optimization-based approach to support salvage logging decisions, which helps in the configuration of an operational-level harvesting and workforce assignment plan. Our model takes into account the payment from an insurance claim as well as future income from harvesting the remaining trees. The model also computes an optimal assignment of personnel to the different activities required. The objective is to improve the cash position of the company by the end of the harvest and ensure that the company is paying all its liabilities and maintaining personnel. We show how our model performs compared to the current decisions made by medium and small-sized forestry companies, and we study the specific case of a small forestry company located in Cauquenes, Chile, which used our model to decide its course of action. (C) 2019 Elsevier Ltd. All rights reserved.

Abstract: Last-mile logistics corresponds to the last leg of the supply chain, i.e., the delivery of goods to final cus-tomers, and they comprise the core activities of postal and courier companies. Because of their role in the supply chain, last-mile operations are critical for the perception of customers regarding the perfor-mance of the whole logistic process. In this sense, the sustained growth of e-commerce, which has been abruptly catalyzed by the irruption of the COVID-19 pandemic, has hanged the habits of customers and overtaxed the operational side of delivery companies, hindering their viability and forcing their adap-tation to the novel conditions. Many of these habits will remain after we overcome the sanitary crisis, which will permanently reshape the structure and emphasis of postal supply chains, demanding compa-nies to implement organizational and operational changes to adapt to these new challenges. In this work we address a last-mile logistic design problem faced by a courier and delivery company in Chile, although the same problem is likely to arise in the last-mile delivery operation of other postal companies, in particular in the operation of express delivery services. The operational structure of the company is based on the division of an urban area into smaller territories (districts) and the outsourcing of the delivery operation of each territory to a last-mile contractor. Because of the increasing volume of postal traffic and a decreasing performance of the service, in particular for the case of express deliveries, the company is forced to redesign its current territorial arrangement. Such redesign results in a novel optimization problem that resembles a classical districting problem with the additional quality of service requirements. This novel problem is first formulated as a mathematical programming model and then a specially tailored heuristic is designed for solving it. The proposed approach is tested on instances from the real-life case study, and the obtained results show significant improvements in terms of the percent-age of on-time deliveries achieved by the proposed solution when compared to the current districting design of the company. By performing a sensitivity analysis considering different levels of demand, we show that the proposed approach is effective in providing districting designs capable of enduring signifi-cant increases in the demand for express postal services.